CAD A shaky start to the week and marked underperformance amidst concerns about the economy after BoC tightening. BoC business outlook survey declined from its high level, which had been expected, although did remain positive and continued to point to healthy business sentiment.
GBP Buffeted by Brexit headlines yet again, and in particular reports that there could be a complete breakdown in negotiations if the EU fails to compromise – this just ahead of more talks between UK PM May, EU’s Barnier and Juncker. Cable dropped around ½ cent on the wire headline, but recovered relatively quickly with a major player advocating a long position earlier in the day. Eur/Gbp eased back from a spike just over 0.8900, with decent option expiries expected to exert
some influence (1.7 bn between 0.8850-0.8900).
EUR Eur/Usd pivoting around the 1.1800 level, and not really rattled by the latest stand-off between Catalonia and Madrid (former failed to declare its hand on independence, prompting the Government to declare that it has moved a step nearer to invoking Article 155, as the deadline now rolls on to Thursday). Option expiries also prominent in this pairing, with some 2.7 bn spanning 1.1760-1.1910.
JPY Usd/Jpy also pretty static against a flattish greenback (DXY holding just above 93.00) despite Fed’s Yellen maintaining December FOMC tightening on the cards (based on inflation picking up ahead).